WorksheetsESB Practice Test 1
Total questions: 32
Worksheet time: 17mins
What is Entrepreneurship?
Quickly advancing in positions within a corporation.
Acquiring leadership and managerial skills.
Marketing and selling products.
Setting up a business with the aim to make a profit.
Which is a true statement about an S-Corporation?
Unlimited shareholders are allowed.
Shareholders are not personally responsible for business liabilities.
The owner is personally responsible for business liabilities.
Unlimited owners are allowed.
Which business structure has only one owner?
S-Corporation
C-Corporation
Sole Proprietorship
Limited Liability Company (LLC)
What is the first stage of the business cycle?
Existence
Survival of the fittest
Success
Maturity
During the Design Thinking Process, which element has you state your users' needs and problems?
Empathize
Define
Challenge Assumptions and Create Ideas
Try your solutions
In general, which two characteristics define a "small" business?
No more than $200,000 in sales
Non-profit
S-Corporation
Fewer than 1,500 employees
Which business management role is the highest-ranking employee in the company?
CFO
CEO
CIO
COO
Which business management role is the one that creates budgets, analyzes financial data, and forecasts company profits?
CEO
CFO
CIO
COO
Which business management role is the one that oversees the day-to-day administrative functions of a business?
CEO
CFO
CIO
COO
What are three disadvantages of selling physical products?
Needing employees to track the supply
Shipping and packaging costs
Needing storage space
Physical products tend to have a lower value
What type of e-commerce product is a movie from a streaming service?
Physical
Market
Digital
Wholesale
When an appliance manufacturer purchases materials from a company to build their appliances what type of transaction is this?
Physical
Digital
Business-to-Business (B2B)
Business-to-Consumer (B2C)
Which corporation uses a double layer of taxation?
C Corporation
S Corporation
Limited Liability Corporation
Sole Proprietorship
What is the main drawback of a sole proprietorship?
They are easy to create
They require a partner
They are responsible to shareholders
They have unlimited personal liability
Once a business is economically sound which stage of the business life cycle is it in?
Take-off
Success
Existence
Survival
What might the design team need to do during the design thinking process?
Conduct surveys to ensure that customers believe the finished product will solve the outlined problem
Create less viable prototype ideas to ensure that they will not solve the outlined problem
Discuss other problems that need to be solved
Revisit previous stages
It is becoming more and more common to sell products and services ___________.
at markets
through wholesaling
through storefronts
online
What are two advantages of selling digital products?
Delivery is instantaneous and inexpensive
Digital products tend to have a higher value
Not needing physical storage, inventory, or additional employees
Digital products are not taxed
When ordering a box of cookies from an out-of-state bakery what type of e-commerce product are you purchasing?
Digital
Physical
Wholesale
Market
When you make a purchase of clothing in a department store what kind of transaction is this?
Digital
Business-to-consumer (B2C)
Business-to-business (B2B)
Physical
A non-profit has a ________ status.
tax-exempt
low-tax
tax liable
non-exempt
What is a disadvantage of S Corporations?
They have high taxation rates
There are very strict qualification requirements for becoming an S corporation
There is a limited number of allowed S corporations
They are subject to double-taxation
Cindy owns a law firm. She recently begun earning more money, and the firm's finances are doing well. In which business life cycle stage is Cindy in?
Existence
Take-off
Success
Survival
Sharon owns a small boutique store. The store has not been receiving a lot of business during the last few months and has been making a low profit. Sharon has a meeting scheduled to discuss these issues with other employees of the grocery store. In which business life cycle state is Sharon in?
Survival
Pivot or persist
Resource maturity
Exit plan
What is the definition of small buisness?
Owned and managed by one individual or sometimes a small group of people with a focus on generating profits
An individual with an idea to offer an innovative product or service about which they are passionate
A business where the owner licenses their operations, products or services, branding, and knowledge for a royalty fee
What is the definition of an entrepreneur?
Owned and managed by one individual or sometimes a small group of people with a focus on generating profits
An individual with an idea to offer an innovative product or service about which they are passionate
A business where the owner licenses their operations, products or services, branding, and knowledge for a royalty fee
What is the definition of a franchise?
Owned and managed by one individual or sometimes a small group of people with a focus on generating profits
An individual with an idea to offer an innovative product or service about which they are passionate
A business where the owner licenses their operations, products or services, branding, and knowledge for a royalty fee
Which compensation type is hourly pay?
Payment for the hours an employee has worked
Fixed payment amount for each pay period
A fee paid to an employee for completing a task
Compensation for the number of units an employee produces
Which compensation type is salary?
Payment for the hours an employee has worked
Fixed payment amount for each pay period
A fee paid to an employee for completing a task
Compensation for the number of units an employee produces
Which compensation type is commission?
Non-cash compensation, including an investment vehicle, ownership in the company, restricted stocks, or shares
Fixed payment amount for each pay period
A fee paid to an employee for completing a task
Compensation for the number of units an employee produces
Which compensation type is piece work?
Non-cash compensation, including an investment vehicle, ownership in the company, restricted stocks, or shares
Fixed payment amount for each pay period
A fee paid to an employee for completing a task
Compensation for the number of units an employee produces
Which compensation type is equity?
Non-cash compensation, including an investment vehicle, ownership in the company, restricted stocks, or shares
Fixed payment amount for each pay period
A fee paid to an employee for completing a task
Compensation for the number of units an employee produces
